Master Thesis Online
What types of firms relocate their headquarters ?
Taik, Abdellah 
Promotor(s) :
Torsin, Wouter
Date of defense : 2-Sep-2024/7-Sep-2024 • Permalink : http://hdl.handle.net/2268.2/21223
Details
| Title : | What types of firms relocate their headquarters ? |
| Translated title : | [fr] Quels types d’entreprises délocalisent leur siège social ? |
| Author : | Taik, Abdellah
|
| Date of defense : | 2-Sep-2024/7-Sep-2024 |
| Advisor(s) : | Torsin, Wouter
|
| Committee's member(s) : | von Frenckell, Eric
|
| Language : | English |
| Number of pages : | 49 |
| Keywords : | [en] headquarters relocations [en] relocations [en] tax reform |
| Discipline(s) : | Business & economic sciences > General management & organizational theory |
| Commentary : | The U.S addressed this problem with the move towards a “territorial” tax system under which U.S. multinational corporations would not face an additional domestic tax on their foreign profits when those profits were brought back to the United States. This would make the company’s U.S tax liability equal to zero on foreign profits wherever its headquarters’ location. (it is important to note that this was not a “pure” territorial system because such principle do not exist, there are always territorial systems with worldwide features.) (Inversions under New Tax Law, 2018) All of this raises a major question about firms and corporate relocations: What type of firms relocate their HQ? And What effect did this tax reform have on this phenomenon? By this research, the aim would be to determine the type of firms relocating their HQs using multiples characteristics such as domain, size, performance…. |
| Name of the research project : | Headquarters relocations |
| Target public : | Researchers Other |
| Institution(s) : | Université de Liège, Liège, Belgique |
| Degree: | Master en sciences de gestion, à finalité spécialisée en Financial Analysis and Audit |
| Faculty: | Master thesis of the HEC-Ecole de gestion de l'Université de Liège |
Abstract
[en] In 2017 under the trump administration, TCJA was passed for many goals such as economic growth and increasing domestic investments and repatriation of offshore earnings. Of the changes that were made are lowering the personal/corporate income tax, and a movement toward a territorial system of corporate income taxation. One of the reasons for this is to motivate companies headquartered in the US to remain there and others to relocate to it.
This research investigates the types and characteristics of firms that relocate their headquarters in the US. Using two types of models, the study analyzes data for companies spanning from 2017 until 2023. The first findings reveal that younger firms with a high number of subsidiaries, low ROE and debt-to-equity ratios, while revenue and number of employees have little to no impact. While the findings using the second model go more in depth about the characteristics by giving estimations for each variable of the firms that relocate. The study also indicates that companies in industries such as technology, manufacturing and software are more likely to relocate their headquarters than other ones.
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